| Q-700 
                  Premium SMS FAQ  
                   We're 
                    here to help.
 At Quios, 
                    we want you to take full advantage of our services. This FAQ will get you started with a 
                    high level overview of how the short code and premium SMS process works in th US. Visitors who
                    have experience with short codes internationally will notice that the carrier requirements in the 
                    US are far more restrictive than anywhere in the world.
 
 If you would like more information, we can send you a our FREE 83 page white paper
                    containing full details on how to run successful mobile marketing and premium billing campaigns 
                    in the US. click 
                    here to request the FREE white paper.
 1. 
                    Getting Started1.1. 
                    What is Premium SMS?
 1.2. What is the market potential of Premium 
                    SMS in the US?
 1.3. Give me some examples of successful 
                    PSMS applications.
 1.4. How do I launch a Premium SMS campaign?
 1.5. What are the Government regulations?
 1.6. Which carriers are participating?
 1.7. What is the typical overall implementation 
                    timetable?
 1.8. Ok, I got it. I'm ready to start. What 
                    are the next steps?
 
 2. 
                    Obtaining Common Short Codes (CSC)2.1. 
                    What is a Common Short Code?
 2.2. What is the format of a CSC?
 2.3. Why do I need a CSC?
 2.4. How do I obtain a CSC?
 2.5. How much will it cost?
 2.6. Am I guaranteed to be able to use 
                    my CSC, once I obtain approval?
 2.7. What's the difference between a random 
                    and a vanity CSC?
 2.8. Can I use shared Short Codes?
 2.9. Ok, I got it. I'm ready to start. 
                    What are the next steps?
 
 3. 
                    Setting up a Short Code Campaign3.1. 
                    I got my CSC, how do I get my service activated?
 3.2. Can Quios help me obtain individual 
                    carrier approvals?
 3.3. What are the carriers' approval criteria?
 3.4. What types of content are acceptable?
 3.5. Can I launch m-commerce services?
 3.6. Can I launch subscription services?
 3.7. Can I launch non-premium services 
                    with my CSC?
 3.8. How do I connect my application to 
                    the various carriers?
 3.9. Do I need a specific billing interface?
 3.10. What SMS features are supported 
                    with the various carriers?
 3.11. Where can I find the Quios connection 
                    API details?
 3.12. I don't want to use an API, can 
                    Quios manage the entire campaign
 for me?
 3.13. Ok, I got it. I'm ready to start. 
                    What are the next steps?
 
 4. 
                    Receiving Payment4.1. 
                    What can I charge my end-user?
 4.2. Do carriers offer MO or MT billing?
 4.3. What are the costs involved in setting 
                    up a campaign ?
 4.4. What are the short code lease costs?
 4.5. What are the short code provisioning 
                    costs?
 4.6. What are the service charges?
 4.7. What are the outpayments?
 4.8. What's the difference between premium 
                    and standard rates?
 4.9. What about charge-backs?
 4.10. What are the payment terms for the 
                    short code lease charges?
 4.11. What are the payment terms for the 
                    service charges?
 4.12. What are the payment terms for the 
                    outpayments ?
 4.13. What about end-user refunds?
 4.14. Are there any message charges involved 
                    in premium transactions?
 4.15. What is the end-user paying for 
                    the premium transactions?
 4.16. How is the revenue share determined?
 4.17. What is the revenue share and invoicing 
                    process?
 4.18. Will I get paid for all my submitted 
                    messages?
 4.19. What management information reports 
                    are available?
 4.20. Ok, I got it. I'm ready to start. 
                    What are the next steps?
 
 1. Getting 
                    Started
 1.1. 
                    What is Premium SMS ?Premium 
                    SMS or PSMS is a mechanism whereby the mobile phone user or 
                    end user pays a premium for either sending or receiving a 
                    text message. The premium charge is billed on his mobile phone 
                    bill or deducted from his prepaid credit. A portion of this 
                    premium charge is shared with the content/application provider 
                    (the ‘outpayment’).
 Back to top
 1.2. 
                    What is the market potential of Premium SMS in the US?According 
                    to IDC (US SMS Forecast, 2003-2007) the US SMS market is growing 
                    at a compound annual rate of 28%. Over 12 billion SMS messages are sent every 
                    month (CTIA website). According to Forrester, 76% of all 18-24 yr old are active text
                    message users, 58% of the 25-34 age group, 43% of the 35-44, 33% of the 45-54, 22% of 
                    the 55-64, and 19% of the 65 yr old and older are active texters.
 Back to top
 1.3. 
                    Give me some examples of successful PSMS applications.Check out 
                    examples of PSMS campaigns for 
                    examples of how to use PSMS.
 Back to top
 1.4. 
                    How do I launch a Premium SMS campaign ?First, 
                    you need to obtain a Common Short Code (See Obtaining 
                    CSCs for more details on how to do so). Secondly, you 
                    project will require individual carrier approvals (of course 
                    we obtain those on your behalf - see Setting 
                    up a PSMS Campaign). Thirdly, you need to integrate your 
                    application with our gateway so that you can receive and send 
                    PSMS messages (see our documentation 
                    APIs for technical details).
 Back to top
 1.5. 
                    What are the Government regulations ?There is 
                    no independent regulatory body in the US to regulate Premium 
                    SMS services. Service restrictions are imposed by the respective 
                    carriers and hence will differ between carriers. However, 
                    we highly recommend that Customers follow the Code of Conduct 
                    of the Mobile Marketing 
                    Association for all PSMS campaigns that have a marketing 
                    focus.
 1.6. 
                    Which carriers are participating ?12 carriers 
                    are participating in the CSC project: Verizon Wireless, Cingular, 
                    AT&T Wireless, Sprint, T-Mobile, Nextel, Virgin Mobile, 
                    Dobson Communications, US Cellular, Cricket Communications, 
                    Western Wireless and Alltel. Following carriers have implemented
                    Premium SMS billing: Verizon, AT&T/Cingular, Sprint/Nextel/Boost, 
                    T-Mobile, Alltel, Dobson/Cellular One, and Virgin Mobile. As more carriers are implementing Premium SMS, Quios 
                    will extend its network to include them.
 Back to top
 1.7. 
                    What is the typical overall implementation timetable ?While 
                    implementation varies greatly depending on the nature of the 
                    campaign, following timetable can be used as a rough estimate. 
                    We assume that ‘x’ is the launch date of your 
                    campaign:
 
                     
                      | x 
                          - 70 days: | complete CSC form, 
                        obtain CSC approval. |   
                      | x - 60 days: | start carrier approval requests |   
                      | x - 15 days: | short code is provisioned. Start 
                        of transmission and billing integration testing. |   
                      | x : | launch of PSMS campaign |   
                      | x + 60 days: | first revenue reaches customer 
                        account |  Back to top
 1.8. 
                    Ok, I got it. I'm ready to start. What are the next steps?Contact 
                    us to receive our FREE white paper and a customized quote.
 Back to top
 2. 
                    Obtaining Common Short Codes (CSC) 2.1. 
                    What is a Common Short Code ?A short 
                    code number is telephone number, traditionally 4-6 digits 
                    in length (5 or 6 digits in the US), which is specific to a network 
                    operator (or a number of networks if they have formalized 
                    an agreement between them). A short code number is allocated 
                    to you for your mobile campaign – there is scope for 
                    you to choose from a range of available numbers. Note that 
                    you can combine up to 8 price points on the same short code. 
                    Some carriers do impose restrictions on which services can be
                    combined on the same code. More details can be found in our
                    FREE white paper.
 Back to top
 2.2. 
                    What is the format of a CSC ?In the 
                    US, a short code is either 5 digits long from 20000 until 99999, or 
                    6 digits from 222222 to 999999. 
                    Short codes are allocated on a first come, first served basis.
 Back to top
 2.3. 
                    Why do I need a CSC ?There are 
                    2 reasons why you need a short code: (i) a short code is the 
                    number associated with your application, and gives end-users 
                    the possibility to send a message to your application. The 
                    short code is the destination number of the message they send. 
                    (ii) a short code is associated in the carrier's billing systems 
                    with a premium charge. Sending a message from your application's 
                    short code to an end-user will trigger the premium billing. 
                    In addition to these technical reasons, there are significant 
                    commercial reasons to obtain a short code. Short codes are 
                    easy for customers to remember, and some short codes have 
                    great branding potential.
 Back to top
 2.4. 
                    How do I obtain a CSC?You can 
                    obtain your CSC from www.usshortcodes.com, or alternatively, 
                    have Quios manage the process for you. You need to fill out 
                    the order 
                    form to obtain short code approval as well as pay the 
                    required short code lease fees. Please contact 
                    us to get the process started.
 Back to top
 2.5. 
                    How much will it cost?Short codes 
                    can be leased for 3/6/12 months. Random short codes cost $500 
                    per month, vanity short codes $1,000 per month. The lease payment needs 
                    to be made upfront for the entire period.
 Back to top
 2.6. 
                    Am I guaranteed to be able to use my CSC, once I obtain approval?No. Once 
                    your CSC is approved and paid for, no one but you will be 
                    able to use that number for the duration of your lease. However, 
                    that doesn't mean the carrier will approve the campaign associated 
                    with the short code. You will need to obtain individual carrier 
                    approval for each campaign that is associated with your short 
                    code. Quios takes care of all administrative requirements 
                    and will handle the approval process for you.
 Back to top
 2.7. 
                    What's the difference between a random and a vanity CSC ?A random 
                    short code is a (5 digit) code that is assigned to you randomly. It 
                    is a dedicated short code (ie. no one but you will be able 
                    to use the number) but the number is selected at random. With 
                    a vanity short code (5 or 6 digits), you decide what the number will be (subject 
                    to availability). You can select an easy to remember number 
                    (‘12345’) or a number that offers branding possibilities 
                    for your business (‘APPLE’ or ‘27753’ 
                    for Apple Computer). Check here 
                    to see if your CSC is still available.
 Back to top
 2.8. 
                    Can I use shared Short Codes ?Yes, shared short code can be
                    deployed in certain circumstances. If you share your code with multiple customers,
                    you will ultimately be responsible for all activity on that code; you need to ensure that
                    all activity falls within the campaign approvals you've received from the carriers, and you
                    need to make sure to enforce all carrier requirements related to consumer permissions.
 Back to top
 2.9. 
                    Ok, I got it. I'm ready to start. What are the next steps?Contact 
                    us to receive our FREE white paper and a customized quote.
 Back to top
 3. 
                    Setting up a Short Code Campaign 3.1. 
                    I got my CSC, how do I get my service activated?Once you've 
                    obtained your CSC, getting your service activated requires 
                    completion of following steps:
  
                    (i) Obtain carrier 
                      approval(ii) Provisioning of CSC on carrier networks
 (iii) Account set up with Quios
 (iv) Integration with Quios platform
 (v) Carrier certification
 
 These steps are further detailed below: 
                    (i) Obtain 
                      carrier approvalEach carrier has the right 
                      to opt-in or out of any short code campaign for any reason. 
                      Carriers don't have to justify their decision. Quios uses 
                      the order 
                      form filled out for the CSC acquisition to obtain the 
                      necessary approvals. Approvals are typically obtained within 
                      4 weeks of initial submission depending on the carrier and 
                      the type of campaign.
 (ii) Provisioning of the 
                      CSC on carrier networksOnce approved, the carrier 
                      will initiate the technical activation process of the short 
                      code. This usually takes between 1 and 2 weeks depending 
                      on the carrier.
  (iii) Account set up with 
                      QuiosQuios will provision a customer 
                      account within 24 hours after receiving the necessary customer 
                      information as per this account 
                      provisioning form.
 (iv) Integration with Quios 
                      platformQuios supports XML/SOAP (‘Qcaster4.0’) 
                      as well as SMPP for connecting your application to our gateway 
                      platform.
 Click here for further information about our APIs.
 (v) Carrier CertificationBack to topCarriers require end-to-end 
                      testing of applications before launch of service. Quios 
                      will coordinate such testing between customer, Quios, and 
                      the respective carriers.
 3.2. 
                    Can Quios help me obtain individual carrier approvals ?Yes, Quios 
                    handles the approval process for you. You fill out the order 
                    form and we do the rest. We will identify possible problem 
                    areas and help you correct those so as to maximize your chances 
                    for speedy carrier approval.
 Back to top
 3.3. 
                    What are the carriers' approval criteria ?Carrier 
                    approval criteria vary widely. Here are a couple of general 
                    guidelines:
 
                    All carriers will 
                      reject adult, gambling, or violence related campaigns. AT&T Mobility
                      will reject all campaigns involving an alcohol brand.Nextel, Boost, and Alltel 
                      will reject binary message campaigns (with content such 
                      as ringtones, icons, etc.). T-Mobile restricts Java applications 
                      and games to a pre-approved 'white list'.Verizon will reject
                    all chat campaigns. T-Mobile limits chat campaigns to 99c per message,
                    Sprint to 50c per message, and Dobson only allows unlimited chat for 
                    a monthly subscription fee.Sweepstake based 
                      campaigns are generally ok, but will take longer to approve 
                      because of legal review required prior to approval.T-Mobile will reject 
                      m-commerce based campaigns (where the value of the service 
                      is unrelated to the mobile phone). Back 
                    to top 3.4. 
                    What types of content are acceptable ?Carrier 
                    content guidelines can be summarized as follows:
 
                    No adult, gambling, 
                      violence related content, or content that is unlawful, harmful, 
                      threatening, defamatory, obscene, harassing, or racially, 
                      ethically or otherwise objectionable. Also not allowed are 
                      services that facilitate illegal activity, promote violence, 
                      promote discrimination, promote illegal activities, or incorporate 
                      any materials that infringe or assist others to infringe 
                      on any copyright, trademark, or other intellectual property 
                      rights. Back 
                    to top 
                     3.5. 
                    Can I launch m-commerce services ?M-commerce 
                    services are services whereby the value of the service is 
                    unrelated to the mobile phone. Example: paying for your parking 
                    ticket by SMS, paying for WIFI access through SMS, etc. Carriers will
                    evaluate their participation in m-commerce services on a case-by-case
                    basis, except for T-Mobile who always rejects them.
 Back to top
 3.6. 
                    Can I launch subscription services?Yes, all 
                    carriers support subscription services. It is very important 
                    to be clear about how end-users can opt-out of a subscription 
                    service. Cingular requires monthly subscription only.
 Back to top
 3.7. 
                    Can I launch non-premium services with my CSC?Yes, 
                    you can. The Quios gateway supports both premium and non-premium 
                    messaging. Please see the pricing 
                    sheet for details on standard messaging. This feature 
                    is most commonly used in marketing campaigns where brands 
                    want the benefits of 2way messaging and easy to remember short 
                    codes, but without charging end-users. Also, customers can 
                    use this feature to send normal information messages to end-users.
 Back to top
 3.8. 
                    How do I connect my application to the various carriers?By working 
                    with Quios, you will only need one connection to our platform, 
                    either using our SOAP API (Qcaster4.0) 
                    or our SMPP 
                    interface. Quios takes care of the routing and billing interfaces 
                    with the various carriers.
 Back to top
 3.9. 
                    Do I need a specific billing interface?No. The 
                    advantage of working with Quios is that billing will be totally 
                    transparent for you. The billing with the various carriers 
                    will be triggered by the premium short code that is assigned 
                    to your campaign.
 Back to top
 3.10. 
                    What SMS features are supported with the various carriers? 
                    binary messaging: 
                      Cingular, AT&T, T-Mobile, Sprint, Nextel (please note: 
                      while binary messaging may be technically possible, some 
                      carriers will not approve premium campaigns that include 
                      binary messaging --- see 3.4 handset delivery 
                      receipts: AT&T (TDMA only), Verizon, Sprint, Tmobile, 
                      Nextel dynamic originators: 
                      not supported Back to top
 3.11. 
                    Where can I find the Quios connection API details?Quios offers 
                    a choice between an XML/SOAP based interface (called Qcaster4.0) 
                    or SMPP 
                    v3.4.
 Back to top
 3.12. 
                    I don't want to use an API, can Quios manage the entire campaign 
                    for me ?Yes, marketing 
                    agencies and brands often rely on Quios for the execution 
                    of the entire campaign. Quios and the marketing agency/brand 
                    together design the message flow between the brand and the 
                    end-user, and Quios will manage the entire campaign on behalf 
                    of customer, providing customer will real-time traffic reports 
                    and management intelligence information to monitor the success 
                    of the campaign.
 Back to top
 3.13. 
                    Ok, I got it. I'm ready to start. What are the next steps?Contact 
                    us to receive our FREE white paper and a customized quote.
 Back to top
 4. 
                    Receiving Payment 4.1. 
                    What can I charge my end user ?Each network 
                    operator is responsible for setting its own range of tariff 
                    rates from which you can choose a tariff to charge your customer. 
                    Therefore it is possible that you may have to charge a different 
                    tariff from operator to operator. However, there are a number 
                    of price points that are available across all major US carriers: 
                    $0.25, $0.30, $0.35, $0.40, $0.45, $0.50, $0.59, $0.75, $0.99, $1.00, $1.25, $1.50, $1.75,
                    $1.99, $2.00, $2.25, $2.49, $2.50, $2.99, $3.00, $3.99, $4.99, $5.00, $5.99, $6.99, $7.99,
                    $8.99, $9.99, $11.96, $15.00, $15.96, $19.99, $29.99. Boost restricts premium SMS tariffs to
                    $6.99. We highly recommend you use 
                    one of these common price points for your cross carrier campaigns 
                    since it will highly simplify your marketing and communication 
                    efforts to promote your service to end-users.
 Back 
                    to top
 4.2. 
                    Do carriers offer MO or MT billing ?Carriers 
                    in the US charge on the Mobile Terminated message.
 Back to top
 4.3. 
                    What are the costs involved in setting up a campaign ?There 
                    are three types of costs involved in setting up a campaign:
  
                    (i) Short code lease costs. 
                      These are the costs for acquiring a short code.(ii) Short code provisioning costs. These 
                      are the costs for provisioning the short code on the various 
                      carrier networks.
 (iii) Service charges. These are the costs 
                      for setting up and maintaining the service between you and 
                      Quios.
 See price 
                    sheet for details.Back to top
 4.4. 
                    What are the short code lease costs?Short codes 
                    are leased from Neustar, not from the carriers themselves. 
                    Neustar is charging a monthly fee for leasing short codes.
  See price 
                    sheet for details.Back to top
 4.5. 
                    What are the short code provisioning costs?Some carriers 
                    are charging a fixed fee to provision a short code on their 
                    network and complete the end-to-end testing for message routing 
                    and billing. Hence, the short code provisioning cost, which 
                    is a one-time cost, incurred with every new short code launch.
 See price 
                    sheet for details.Back to top
 4.6. 
                    What are the service charges?Service 
                    charges are the setup and maintenance fees charged by Quios 
                    for implementing a connection to the Quios platform, and maintaining 
                    such connection according to the agreed SLA. These costs include 
                    all technical and commercial assistance in implementing cross-carrier 
                    premium campaigns, such as obtaining carrier approvals, assisting 
                    you with the integration, performing end-to-end short code 
                    testing, etc..
 See price 
                    sheet for details.Back to top
 4.7. 
                    What are the outpayments?The outpayment 
                    rate is the rate Quios pays back to you based on the number 
                    of messages successfully billed by the carrier per month. 
                    Since rates differ by carrier, they are listed separately. Quios
                    is the only provider offering the option of a 'Flat Rate' pricing model. For a fixed
                    fee per month, we will pay you 100% of the outpayments we receive.
 See price 
                    sheet for details.Back to top
 4.8. 
                    What is the difference between premium and standard rates?Premium 
                    rates are the outpayment rates (Quios pays you) on premium 
                    billed messages. Standard rates are the message costs (you 
                    pay Quios) for non-premium billed messages.
 Back to top
 4.9. 
                    What about charge-backs?Contractually, 
                    carriers have the possibility to credit end-users, and deduct 
                    such credit from the revenue share. If this occurs, Quios 
                    will provide a full statement of revenue share and charge-backs. 
                    Charge-backs are not a common occurrence.
 Back to top
 4.10. 
                    What are the payment terms for the short code lease charges?Short code 
                    lease charges need to be paid upfront for the entire lease 
                    period. Only after such payment is made, can the approval 
                    process with the carriers start.
 Back to top
 4.11. 
                    What are the payment terms for the service charges?Service 
                    charges need to be paid at least 7 business days prior to 
                    launch of the premium service.
 Back to top
 4.12. 
                    What are the payment terms for the outpayments ?Carriers 
                    are paying Quios between 45 and 90 days after the end of the 
                    month in which the charge occurred. Quios will pay you within 
                    30 days after receipt of carrier outpayment.
 Back to top
 4.13. 
                    What about end-user refunds?You assumes 
                    full responsibility for refunding end-users when the situation 
                    arises. Quios assumes no responsibility for refunding end-users.
 Back to top
 4.14. 
                    Are there any message charges involved in premium transactions?No. A premium 
                    transaction usually consists of an MO message requesting a 
                    service, and a premium charge MT message delivering that service, 
                    and triggering the billing transaction. There may be a small charge 
                    to you for receiving the MO message (depending on the price model you choose) but
                    there is never a charge for sending the premium billed MT message.
 Back to top
 4.15. 
                    What is the end-user paying for the premium transactions?A premium 
                    transaction usually consists of an MO message requesting a 
                    service, and a premium charged MT message delivering that 
                    service, and triggering the billing transaction:
  
                    (i) MO message: If the 
                      end-user's phone plan includes an SMS bundle, the MO will 
                      be deducted from this credit. If the user does not subscribe 
                      to an SMS bundle, they will be charged the standard rate 
                      for an SMS MO (for most carriers: $0.15, subject to change) (ii) Premium 
                      MT message: End-users will be charged the specified 
                      premium charge for premium messages on all carriers except 
                      Verizon. On Verizon, end-users will be charged the premium 
                      charge PLUS the standard charge for receiving an MT message 
                      ($0.15, subject to change). (iii) Non-Premium MT message: 
                      End-users will typically incur the regular 
                      MT charge on all carriers. Back to top
 4.16. 
                    How is revenue share determined?Revenue 
                    share is determined from the confirmed billing statistics 
                    provided by the carriers. The carriers take their predetermined 
                    share of the revenue from a campaign and refund to Quios the 
                    remainder. Quios refunds to you your share of the revenue 
                    while retaining a prearranged share (except for 'Flat Rate' pricing in which case we refund you
                    100% of what we receive). You receive detailed 
                    reports and traffic statements.
 Back to top
 4.17. 
                    What is the revenue share and invoicing process? 
                    As soon as Quios 
                      receives payment from the carriers, Quios will provide you 
                      with a traffic statement, detailing the volume of premium 
                      transactions and associated revenue share amount.You will receive payment for your own revenue share
                    within 30 days after receipt of the funds from the carrier. Quios employs a self-billing system, so
                    you don't need to invoice Quios to get paid.
 Back 
                    to top  4.18. 
                    Will I get paid for all my submitted messages?You are 
                    compensated based on the number of messages the carriers report 
                    in their billing statistics. From past experience, the number 
                    of submitted messages and the number of billed messages often 
                    do not match. The Success Billing Ratio (SBR) is defined as 
                    the number of messages effectively billed by the carrier, 
                    divided by the number of messages submitted to the carrier. 
                    E.g. if you submit 100 messages and the carrier traffic report 
                    only lists 95, the SBR will be 95%. The SBR varies by carrier 
                    and by service. Subscription services tend to have lower SBRs 
                    than one-off services. Other reasons may be insufficient credit 
                    (only for prepaid cards), charge-backs, etc.
 Given the low percentage of prepaid cards in the US, the SBR 
                    is expected to be reasonably high (>80%), and very much 
                    dependent on the precise nature of the service. You can significantly 
                    influence the SBR rate by ensuring proper communication of 
                    all relevant terms and conditions and setting the right service 
                    expectations. When end-users start complaining about a particular 
                    service, its associated SBR will drop significantly and carriers 
                    are likely to suspend the campaign.
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 4.19. 
                    What management information reports are available?Quios provides 
                    two types of reports:
  
                    (i) Extranet 
                      reports: include summary statistics and detailed 
                      CDRs for all messages managed by the Quios platform. (ii) Carrier 
                      traffic reports: these are the reports received 
                      from the carrier, detailing how many messages were effectively 
                      billed. Experience shows that 
                    these two reports will not match completely. See 4.18 
                    for a more detailed explanation on why this is the case and 
                    how it will impact outpayments.Back to top
 4.20. 
                    Ok, I got it. I’m ready to start. What are the next 
                    steps?Contact 
                    us to receive our FREE white paper and a customized quote.
 Back to top
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